Chile Manufacturing Output Shrinks

News Event

From Trading Economics: Manufacturing production in Chile went down 6.9 percent year-on-year in October of 2016, following a 1.4 percent increase in the previous month and worse than estimates of a 1.0 percent increase. It is the biggest contraction since March of 2010, driven by falling food production (-9.8 percent from +2.7 percent in September), namely frozen salmon and trout after last year's Calbuco volcano eruption destroyed the biomass. Output also declined for tobacco (-8.0 percent from +5.1 percent); chemical products (-12.6 percent from +1.5 percent); rubber and plastic products (-11.6 percent from -11.7 percent) and furniture (-9.6 percent from -5.4 percent). In contrast, production rose for machinery and equipment (+13.5 percent from +17.7 percent) and printing activities (+8.9 percent from +3.9 percent). On a monthly basis, factory output declined 5 percent.

Market Closing Wrap

In European Equity Markets stocks steadied on Tuesday after finishing lower in the previous session, with banks stronger but miners down on a fall in industrial metals prices. The pan-European STOXX 600 index was up 0.02 percent. The European basic resources index was down 1.2 percent as prices of major industrial metals fell by 1 to 2.2 percent after recent strong gains. Shares in Antofagasta, BHP Billiton, Rio Tinto and Anglo American fell by 1.7 to 3.4 percent following a 1.2 to 2.1 percent fall in prices of copper , aluminium and nickel. Swiss biotech firm Actelion fell 4.6 percent on a report saying the company was not actively considering selling itself, but instead weighing a "complicated deal" to link with Johnson & Johnson.

In Currency Markets the dollar fell on Tuesday as the greenback consolidated its position against most major currencies following a roller-coaster 24 hours which traders say may just be a precursor to three weeks of risk-packed events including the Federal Reserve's December policy meeting. The dollar was last up 0.8 percent against the yen at 112.82 yen. The euro was flat against the dollar at $1.0618. The pound rose 0.75 percent against the dollar to $1.2506. The dollar index scaled to a nearly 14-year peak of 102.050 on Thursday before profit-taking and oil price jitters brought it back down to earth. It was last down 0.15 percent to 101.160.

In Commodities Markets oil prices fell almost 4 percent on Tuesday on signs leading oil exporters in OPEC were struggling to agree on a deal to cut production to reduce global oversupply. Brent futures were down 3.7 percent, at $46.44 a barrel. U.S. crude fell 3.8 percent, to $45.29 per barrel. The OPEC will meet in Vienna on Wednesday aiming to implement a deal outlined in September to cut output by around 1 million barrels per day (bpd), from around 33.82 million bpd in October.  Spot gold was down 0.6 percent at $1,186.33 an ounce. Silver fell 0.8 percent to $16.49 an ounce, while platinum lost 0.3 percent to $919.70. Palladium gained 0.3 percent to $758.10 after rising to $760.30 on Monday, its highest since June 4, 2015.

In US Equity Markets  stocks were little changed in early trading on Tuesday as a sharp fall in oil prices weighed on energy stocks, while a rise in healthcare stocks helped limit losses. The Dow Jones industrial average was down 0.04 percent, at 19,090.67. The S&P 500 was up 0.02 percent, at 2,202.13 and the Nasdaq Composite index was up 0.14 percent, at 5,376.07. Six of the 11 major S&P sectors were higher, with the healthcare index's 0.63 percent rise leading the advancers. UnitedHealth's 2.1 percent rise helped boost the sector. Tiffany was up 5.6 percent after the upscale jeweler reported its first rise in sales in eight quarters. Shoe Carnival fell 12.4 percent after the footwear retailer reported lower-than-expected third-quarter results.

In Bond Markets U.S. Treasury yields inched higher on Tuesday after stronger-than-expected U.S. gross domestic product data supported expectations for a faster pace of Federal Reserve rate increases next year, while month-end buying and uncertainty ahead of key events limited the rise. Gross domestic product increased at a 3.2 percent annual rate instead of the previously reported 2.9 percent pace, the Commerce Department said in its second GDP estimate.  Benchmark 10-year U.S. Treasury notes were last down 4/32 in price, with yields rising to 2.3358 percent from 2.320 percent late Monday. Italy's 10-year bond yield was down 8 basis points at 1.98 percent, having touched a fresh one-week low of 1.97 percent after the report.

Source: Institute of Trading and Portfolio Management